{"id":24610,"date":"2021-01-21T12:27:41","date_gmt":"2021-01-21T06:57:41","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=24610"},"modified":"2021-01-21T12:27:44","modified_gmt":"2021-01-21T06:57:44","slug":"legal-obligations-for-running-a-food-delivery-application-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/legal-obligations-for-running-a-food-delivery-application-in-india\/","title":{"rendered":"What are the Legal Obligations for Running a Food Delivery Application in India?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Food Delivery Application is gaining popularity in the Indian market due to its widespread reach and unparallel convenience. The popularity of these platforms is increasing every passing day, which allows more start-ups to step into this business domain. As the name suggests, Food delivery application works on an online channel that allows customers to place an order in fractions of seconds through an intuitive interface. Online dominance allows online food aggregators to gain access to the wide bandwidth of the masses and earn more profit. <\/p>\n\n\n\n<p>If you are willing to be part of this business model, then you would be required to avail the long list of government-based licenses and registrations in the first place.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/online-food-ordering-system-make-your-brand-create-milestones\/\">How can an Online Food Ordering System make your brand create milestones?<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Mandatory Registration\nfor Running a Business of Online Food Delivery Application in India<\/h2>\n\n\n\n<p>In view of the existing legal framework, we have compiled a list of registrations and license that one has to avail for setting up a business of online delivery application in India.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Mandatory-Registration-for-Running-a-Business-of-Online-Food-Delivery-Application-in-India.png\" alt=\"Mandatory Registration for Running a Business of Online Food Delivery Application in India\" class=\"wp-image-24635\" width=\"530\" height=\"542\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Mandatory-Registration-for-Running-a-Business-of-Online-Food-Delivery-Application-in-India.png 985w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Mandatory-Registration-for-Running-a-Business-of-Online-Food-Delivery-Application-in-India-293x300.png 293w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Mandatory-Registration-for-Running-a-Business-of-Online-Food-Delivery-Application-in-India-768x786.png 768w\" sizes=\"(max-width: 530px) 100vw, 530px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Drafting Agreement with\nthe Suppliers and Vendors&nbsp;<\/h3>\n\n\n\n<p>Setting up\na legal agreement with the vendors and suppliers should be your foremost\npriority while establishing a Food Delivery Application. While drafting a legal\nagreement, make sure to put any confusion and ambiguity out of the equation by\nenclosing relevant terms and conditions. The agreement must be drafted legally\nand should enclose the signature of the concerned parties.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">FSSAI License<\/h3>\n\n\n\n<p><a href=\"https:\/\/corpbiz.io\/fssai-license\"><strong>FSSAI license<\/strong><\/a> is mandatory for all food business operators, including running a Food Delivery Application in India. FSSAI Registration is primarily classified under three categories \u2013 Basic, State, and Central License. One can apply for these licenses based on the scope of operation and income.<\/p>\n\n\n\n<p>FSSAI\nlicense holders are legally bound to avert malpractices regarding the food\nbusiness. They are liable to ensure that the food proposed to be served as a\ncustomer is free from adulteration and other harmful substances. As per the\ngovernment rules, the FSSAI license remains active for the duration of one\nyear.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Health or Trade License<\/h3>\n\n\n\n<p>Most states mandate the establishment to obtain a <a href=\"https:\/\/corpbiz.io\/trade-license\"><strong>trade license<\/strong><\/a> from the Municipal Corporation if they have an in-house kitchen facility to support their online business. Authority normally grants this license within the 30 days duration from the date of application. Trade license comes with a validity period of one year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Business Registration<\/h3>\n\n\n\n<p>A registered business can avail of proven benefits such as perpetual succession, tax exemption, and fewer liabilities. Based on the scale of operation, management structure, and income, you can opt to register under different business models such as Sole Proprietorship, LLP, or Partnership Firm, or <a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>Company registration<\/strong><\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Tax Registration<\/h3>\n\n\n\n<p>Every\nbusiness entity reaping income through non-exempted products and services is\nliable to address the tax liabilities as per the GST and Income Tax Act. <\/p>\n\n\n\n<p>For online transactions, one has to avail of a <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST registration<\/strong><\/a> certificate from the concerned authority. The applicant can also obtain <a href=\"https:\/\/corpbiz.io\/msme-registration\"><strong>MSME registration<\/strong><\/a> to get access to government-mandated benefits.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Shop and Establishment\nLicense<\/h3>\n\n\n\n<p>Shop Act\nLicense is a state-specific license, and it is compulsory for all businesses,\nincluding online food aggregators. Department of Labor issues this license\nwithin the duration of 30 days from the date of the submission of the\napplication.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Employee Provident Fund\nOrganization Registration<\/h3>\n\n\n\n<p><a href=\"https:\/\/corpbiz.io\/epf-registration\"><strong>EPF registration<\/strong><\/a> is generally applicable to those establishments having manpower not less than 20. The employers are required to avail of this registration within 30 days of attaining the said strength. <\/p>\n\n\n\n<p>Once\nobtained, the registration will continue to serve its purpose even if the\nemployee numbers fall below the required limit. The applicant needs to visit\nthe EPFP portal to submit an online application for the EPF registration.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">ESI Certificate&nbsp;<\/h3>\n\n\n\n<p>ESI is an\nabbreviated term of Employee State Insurance controlled by the Employee State\nInsurance Corporation, an apex body set up by the law under the Ministry of\nLabour &amp; Employment, GOI. <\/p>\n\n\n\n<p>Under the\nsaid scheme, the company owner requires contributing an amount of 4 percent of\nthe employee\u2019s total monthly salary; meanwhile, the employee needs to\ncontribute about 1 % of this\/her salary every month.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">NOC from the Fire\nDepartment<\/h3>\n\n\n\n<p>The online\nfood aggregators running Food Delivery Application having an in-house kitchen\nfacility will be required to avail NOC from the fire department of the\nrespective states. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Environmental Clearance\nCertificate&nbsp;<\/h3>\n\n\n\n<p>Environmental clearance is a procedure of availing <em><strong>government<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Government\"><em><strong>[1]<\/strong><\/em><\/a><\/sup> clearance for certain projects that are affecting the environment in one way or another. Government has already drafted a list of project that comes under the environmental clearance regime. These are as follows:&nbsp;<\/p>\n\n\n\n<ul><li>Thermal power plants<\/li><li>Mining&nbsp;<\/li><li>Infrastructure&nbsp;<\/li><\/ul>\n\n\n\n<p>The EIA (Environmental Impact\nAssessment)notification classified the project into two primary categories:\nCategories A % B. Projects coming under Category A get approval from the\nMinistry of Environment, Climate change, and forest, &amp; Category B will get\ntheir approval from the State Environmental Impact Assessment Authority.<\/p>\n\n\n\n<p><em><strong>Some optional\nyet important licenses for an online food aggregator:&nbsp;<\/strong><\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Trademark Registration<\/h3>\n\n\n\n<p><a href=\"https:\/\/corpbiz.io\/trademark-registration\"><strong>Trademark registration<\/strong><\/a> adheres to a lot of importance for businesses that care about protecting their brand identity. Once your businesses attain the good repo in the target market, it will become more susceptible to brand violation. And this is something you should consider very seriously if you are dreaming of reaping long term benefits from your business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Signage License<\/h3>\n\n\n\n<p>Signage\nLicense renders the legal permit to the applicant to promote their offerings or\nbrand through conventional marketing channels such as signs and boards. One can\nreach out to local civil authorities to avail of such a license.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion&nbsp;<\/h2>\n\n\n\n<p>There is\nno denying that launching a Food Delivery Application attracts plenty of legal\nobligations. There is a long list of government licenses and registrations that\none has to avail of before stepping into such a business model. <\/p>\n\n\n\n<p>Apparently, it would be daunting for anyone to avail of these registrations in one-go owing to the intricacy of the process. In such cases, it is advisable to contact to hire a professional like <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a> that can render end-to-end support on the registration process.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/setting-up-an-online-food-delivery-marketplace-in-india\/\">Key Insights on Setting up an Online Food Delivery Marketplace in India<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Food Delivery Application is gaining popularity in the Indian market due to its widespread reach and unparallel convenience. The popularity of these platforms is increasing every passing day, which allows more start-ups to step into this business domain. As the name suggests, Food delivery application works on an online channel that allows customers to place [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":24614,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[150],"tags":[1452],"acf":{"service_id":"318"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":8925,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24610"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=24610"}],"version-history":[{"count":8,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24610\/revisions"}],"predecessor-version":[{"id":24636,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24610\/revisions\/24636"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/24614"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=24610"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=24610"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=24610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}